India’s JSW Cement expands northward with $360m plant

India’s JSW Cement will invest 30 billion rupees ($360.2 million) in a new cement factory in Rajasthan to meet the growing demand in the nation’s construction industry, Reuters reported on Tuesday.

The country’s cement industry is experiencing a surge in demand due to increased government spending on infrastructure projects and a strong real estate market.

JSW Cement is following industry leader UltraTech Cement, which has pledged $3.9 billion for capital expenditure over the next three years.

The new factory will cater to Rajasthan, Haryana, Punjab, and the National Capital Region (NCR), marking JSW Cement’s entry into the northern market currently dominated by Shree Cement and UltraTech.

Ashutosh Murarka, a research analyst at Choice Broking, believes that the new plant will provide JSW Cement with cost advantages and boost its profitability due to access to limestone reserves and reduced freight costs. JSW Cement, despite being a new player in the industry, is expected to benefit significantly from this expansion.

The factory will comprise a clinkerization unit with a capacity of 3.3 million tons per annum (MTPA) and a grinding unit with a capacity of 2.5 million MTPA.

JSW Cement plans to finance the project through a combination of equity and long-term debt. The company also expects to generate 1,000 direct and indirect jobs.